Iraq's massive oil reserves, the third-largest in the world, are about to be thrown open for large-scale exploitation by Western oil companies under a controversial law which is expected to come before the Iraqi parliament within days.

The US government has been involved in drawing up the law, a draft of which has been seen by The Independent on Sunday. It would give big oil companies such as BP, Shell and Exxon 30-year contracts to extract Iraqi crude and allow the first large-scale operation of foreign oil interests in the country since the industry was nationalised in 1972.

The huge potential prizes for Western firms will give ammunition to critics who say the Iraq war was fought for oil. They point to statements such as one from Vice-President Dick Cheney, who said in 1999, while he was still chief executive of the oil services company Halliburton, that the world would need an additional 50 million barrels of oil a day by 2010. "So where is the oil going to come from?... The Middle East, with two-thirds of the world's oil and the lowest cost, is still where the prize ultimately lies," he said.

Vice President Dick Cheney's energy task force appeared to have some interest in early 2001 in Iraq's oil industry, including which foreign companies were pursuing business there, according to documents released Friday by a private watchdog group.

Judicial Watch (search), a conservative legal group, obtained a batch of task force-related Commerce Department papers that included a detailed map of Iraq's oil fields, terminals and pipelines as well as a list entitled "Foreign Suitors of Iraqi Oilfield Contracts."

Posted by Dave Johnson at January 7, 2007 10:26 AM

Trackback Pings

TrackBack URL for this entry:
http://www.seeingtheforest.com/cgi-bin/mt/mt-t.fcgi/2613